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goldminingXpert (29.43)

FedUpUSA States That $700 Billion Bailout Threatens U.S. Democracy, Sovereignty

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September 22, 2008 – Comments (16)

Press release posted verbatim: 

 

LOS ANGELES--(BUSINESS WIRE)--According to Karl Denninger, of FedUpUSA, the $700 billion bailout proposed last week by Federal Reserve Chairman Ben Bernanke and Treasury Secretary Henry Paulson effectively anoints Paulson “King” of American Finance.

The plan for the largest bailout in history has been rapidly crafted and is being forced through Congress a week before recess, effectively moving Wall Street’s disaster to Main Street with little discussion and less understanding, according to Denninger. The bailout does not address the issues affecting market confidence and will severely undermine the United States’ balance sheet.

“The plan has been sold using fear rather than facts to both Congress and the American people,” said Denninger, of FedUpUSA, a grassroots organization, and The Market Ticker, provider of commentary on capital markets.

“The fear gripping our financial markets flows from a lack of trust in the health of firms on both Wall Street and worldwide,” said Denninger. “Throwing money around does nothing to address the root cause and, in fact, simply creates further instability as we continue to have government fiat choose which firms succeed and which ones fail.”

Currently, interest on the national debt is the second largest expenditure besides military (this excludes Social Security and Medicare which are included in the Unitary Budget, but funded separately). The $700 billion bailout, which could potentially end up costing much more, will add even more debt interest. Debt interest has the potential of becoming the largest budget item, dwarfing the entire budget. This in turn could lead to capital flight from the United States and a devaluation of the U.S. dollar, already significantly depreciated under Secretary Paulson, among other things.

FedUpUSA and Denninger are advocating for an alternative – a plan that will restore confidence by ensuring that all market participants are able to objectively value firms, thereby calming both the credit and stock markets.

Americans concerned about this massive bailout are encouraged to visit http://financialpetition.org/petition-nobail.shtml and sign the petition to Congress, as well as phone members of Congress and tell them, “No more bailouts!” More information, including two 10-minutes videos on the problem and solution, is at http://FedupUSA.org.

The press release is available here... please pass along to your friends and to your representatives in the government.

16 Comments – Post Your Own

#1) On September 22, 2008 at 2:46 PM, PCScipioA wrote:

A voice of sanity.

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#2) On September 22, 2008 at 4:18 PM, Tastylunch (29.20) wrote:

This is a futile effort in my opinion (we all saw how easily Americans surrendered some of their freedoms after 9/11....), but worth a shot.

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#3) On September 22, 2008 at 5:40 PM, goldminingXpert (29.43) wrote:

Tasty--at least we can tell our grandchildren that we tried, even if our efforts fail (and I believe we can stop this thing.)

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#4) On September 22, 2008 at 8:01 PM, pjani06 (29.05) wrote:

We CAN stop this.  thanks for putting up the petition link.

I just signed & sent it. 

Today I just put up my first blog post on this matter & put up a link from Karl Denninger who submitted to the Senate Banking Commitee a document that addresses fixing of the issues that caused our current mess. 

HERE is the link to the written plan ; click here:

http://www.denninger.net/letters/paulson-bernanke-senate.pdf

Fool on.

 

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#5) On September 22, 2008 at 8:09 PM, Tastylunch (29.20) wrote:

Believe me I'll try my college best, just sayin politicians helped get us into this mess with their gullibility/stupidity. I don't think they are gonna get balls or smarts over night.

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#6) On September 22, 2008 at 9:13 PM, pjani06 (29.05) wrote:

Well that leaves the situation ripe for people like you and me to flush out our current set of politicians.

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#7) On September 22, 2008 at 11:54 PM, RVAspeculator (28.88) wrote:

Goldmining,

Even though we argued about the direction of gold when it was in the low 800's a while back know I am on your side 100% on this.  I e-mailed this article to everyone in my address book.   I even sold most of my gold at a profit.  I want this to stop and I don't even want to profit off it anymore. 

Get this bill stopped at all costs folks.

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#8) On September 23, 2008 at 12:39 AM, Tastylunch (29.20) wrote:

another version has arrived

http://www.votenobailout.org/

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#9) On September 23, 2008 at 4:50 AM, jester112358 (28.72) wrote:

Very useful post.  I signed it at the link.  Nice to be doing something useful.  Though many of us could profit somewhat from this calamity by being long commodities and short financials, if there is no society as a result of this "plan" those paper profits will be very shallow and useless indeed.

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#10) On September 23, 2008 at 7:50 AM, bobhorn100 (< 20) wrote:

Paulson wants to be KING

not a good idea 

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#11) On September 24, 2008 at 4:48 PM, Pacificfyr (53.71) wrote:

Thanks for the post. This is just another example of abuse of power and the consolidation of wealth at the expense of 95% OF THE PEOPLE. I have signed and I hope this works, but I have my doubts.

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#12) On September 24, 2008 at 6:01 PM, DeerHunter73 (72.99) wrote:

All these petitions being signed are doing nothing. GREAT FOR READING MATERIAL or toilet paper. As far as it doing any real good as far as the vote goes these petitions have as much bearing or the chance of making a difference as bill clinton being re elected in 2008!

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#13) On September 24, 2008 at 6:01 PM, DeerHunter73 (72.99) wrote:

All these petitions being signed are doing nothing. GREAT FOR READING MATERIAL or toilet paper. As far as it doing any real good as far as the vote goes these petitions have as much bearing or the chance of making a difference as bill clinton being re elected in 2008!

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#14) On September 25, 2008 at 2:13 AM, goldminingXpert (29.43) wrote:

Deer, you're buying up garbage like ABK and FNM. Have fun getting crushed. You support the bailouts cause you're trying to suck the taxpayers dry. Get a real job.

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#15) On September 25, 2008 at 8:08 AM, DeerHunter73 (72.99) wrote:

I could careless about the bailout. A bailout will NOT correct anything. An ENTIRELY NEW gov on the other hand would and thats not picking either of the 2 dumbasses running now! All these so called petitions being signed are a joke. "THE TAX PAYERS ARE ON THE LINE FOR THE REST OF THERE LIVES JUST PAYING OF THE IRAQ WAR"! WHICH WAS ONLY STARTED DUE TO THE FACTS HIS DADDY FAILED TO GET HIM THE 1ST TIME, If bush could stay in office longer we would stay at war longer and be in new wars else where. Your all complaining about a 700 bil bailout why dont you start with the trillion spent on the 2 currently active wars! The entire economy is crashing as i stated would happen a month ago. Weve been in a recession for over 6 months and with or without this bailout were heading into a great depression greater then anyone saw in 1929. As far as my stock picks my abk was sold on 09/08/2008 i said back on the day fre and fnm were bailed out i would buy them once they hit bottom and i did just that. Wake up fre and fnm arent going anywhere and thats just a fact everyone will have to deal with. Ive watched people praise the companies 18 months ago to the same people talkin trash about them now. stop diggin for caps points and start worriing where you could rest your head and where your family will be sleeping weather this bailout happens or not!

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#16) On October 06, 2008 at 7:32 PM, bostoncelitcs (43.66) wrote:

The markets really responded to the bailout bill President Bush signed on Friday! 

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